Joliet bankruptcy attorney David Siegel states that if the debtor cannot make Chapter 13 plan payments, then the case very well may be dismissed upon motion of the Chapter 13 trustee or upon motion of a creditor. If someone is behind on their plan payments, I recommend several things. First, the debtor can make a partial payment so that they don’t fall too far behind. Second, the debtor can wait until the trustee brings a motion to dismiss and then try and either defer the default or bring a motion to waive the default based on the particular case.
When it comes to creditors, however, you must continue to make your regular post-petition mortgage payment outside of the bankruptcy case. If you fail to make your post-petition mortgage payment, then the mortgage company can bring a motion to modify the stay even if you are current in your Chapter 13. With regard to financed vehicles, these vehicles are paid through the Chapter 13. The minute you as the debtor stop making your Chapter 13 plan payment, the creditor no longer receives a monthly disbursement. Once the creditor stops receiving disbursements, they are going to quickly bring a motion to modify the stay because they have a depreciating asset with no adequate protection. You also have the ability to let the case dismiss and possibly refile and get another bite at the apple. If you have the case dismissed within one year and you refile, then you must bring a motion to extend the automatic stay, otherwise the state will automatically end 30 days after filing.
Competent legal counsel will know how to bring that motion. Inferior counsel will not know about that motion and your property will be subject to repossession even though you are under a new Chapter 13 bankruptcy case. Consult with an experienced bankruptcy attorney before you think about filing Chapter 13 bankruptcy. Chapter 13 bankruptcy is complicated law with many ins and outs that someone will not be aware of unless they practice bankruptcy law on a daily basis.